What Disadvantages Result from Increased International Trade, According to Critics

question 8

Multiple Choice

What disadvantages result from increased international trade, according to critics of globalization?

• A) Multinational corporations will increasingly shape the policies of governments.
• B) More consumer goods will be produced.
• C) Prices of goods and services will decline.
• D) People will gain exposure to different cultures.

Recognize the largest regional trading blocs and their impact on international trade.

Understand the historical development of international trade agreements such as GATT.

Understand the arguments for and against trade protectionism in various industries (e.g., infant industry, declining industries, national defense).

Conceptualize the effects of international trade on economic efficiency and opportunity costs.

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Definitions:

APC

Average Propensity to Consume, indicating the percentage of income that an individual or average consumer spends rather than saves.

Disposable Income

The total amount of money available for an individual or household to spend or save after taxes have been deducted.

Consumption

The use of goods and services by households, constituting one of the major components of GDP.

APC

Average Propensity to Consume, which is the fraction of income that is consumed rather than saved.